Kilusang Magbubukid ng Pilipinas (KMP) criticized the proposal of the Department of Finance (DOF) to further liberalize the domestic sugar industry.
The group said allowing more sugar imports will not lower the current high prices nor cushion the impact of taxes on sugary beverages especially if the government will pattern its decision with the Rice Tariffication Law.
“As if the high volume of sugar imports is not enough, economic managers are bent on further liberalizing the sugar industry at the expense of consumers and sugar workers. DOF Secretary (Benjamin) Diokno even wants to use the Rice Tariffication Law as model for all agricultural products covered by non-tariff barriers. If that is the case, then we can say goodbye to Philippine sugar soon. Liberalization will be the final nail on the coffin of the country’s ailing sugar industry,” said Danilo Ramos, KMP chairperson, in a statement yesterday.
The group added while the government has been importing sugar in “record volume,” prices have gone up by at least 80 percent under the current administration.
“The retail price of refined sugar in markets went from P54.50 in June 30, 2021 to P90 in June 2022 and more recently, sugar prices have gone up to P110 per kilo,” Ramos said.
KMP also warned majority of sugar farmers and workers will “suffer the same plight of rice farmers affected by rice tariffication once full liberalization of the sugar industry takes effect” especially that more than 85 percent of the country’s sugar planters are small planters with an average farm size of less than 5 hectares of sugar farmers.
The DOF said it is looking at allowing the importation of sugar as a “compromise” to producers and sellers to be impacted by the planned rate increase and the elimination of exemptions on the sweetened beverage tax.
The DOF and the Department of Health are jointly pursuing a junk food and sweetened beverage tax.
The Philippine Sugar Millers Association urged the DOF to implement more efficient tax collection policies instead of raising the tax rate starting next year.
The DOF intends to increase the sweetened beverage tax rate under the Tax Reform for Acceleration and Inclusion Law to P12 per liter, regardless of the type of sweetener used.
This tax rate will be indexed annually by four percent, and exemptions will be eliminated to broaden the tax base.
Based on Department of Agriculture’s monitoring of public markets in the National Capital Region yesterday, prevailing retail price of sugar ranges from P86 to P110 per kg for refined sugar and P80 to P90 per kg for both washed and brown sugar.
Meanwhile, Sugar Regulatory Administration millsite monitoring showed composite price of raw sugar as of June 11 was 3,050 per 50 kg bag. -Jed Macapagal
